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<br />6 <br /> <br />The Agency may consider expanding the per-project limit up to $2,000,000 if project exceeds <br />Threshold Eligibility Requirements in any of the ways identified above and meets two or more of <br />the following conditions: <br /> <br />1. Developer commits to an affordability period greater than 30 years; <br />2. Intermediary costs are below 15%; <br />3. GROW loan to be structured as interest-bearing with interest payments made annually <br />and/or amortizing; <br />4. Developer fee does not exceed 80% of maximum allowable; and/or <br />5. Project provides the Agency with a right of first refusal or other means of future <br />ownership opportunity. <br /> <br />Homeownership Developments: <br /> <br />Developers may apply for either new construction or acquisition-rehabilitation projects. To be <br />eligible for GROW funding, homeownership projects must include resale provisions that <br />facilitate long-term affordability through subsequent sales to income-qualified buyers. Resale <br />provisions must be memorialized in a document to be recorded against the property, such as a <br />ground lease or other covenant. <br /> <br />The maximum per-unit award available to affordable homeownership applications meeting <br />Threshold Eligibility Requirements shall be the lesser of $100,000 or the value of the land, as <br />established through a land appraisal. The maximum loan for proposals meeting Threshold <br />Eligibility Requirements shall be $1,000,000 per project. <br /> <br />The Agency may consider increasing the per-unit award to $200,000 and the maximum loan to <br />$2,000,000 for projects that exceed Threshold Eligibility Requirements by serving households at <br />or below 80% AMI. <br /> <br /> <br />General Terms: <br /> <br />GROW Funds will be awarded to the owner or developer (not individual homeowners). All funds <br />will be structured as loans secured against the property. Loan structure will be dependent on the <br />period of affordability and the project’s ability to repay, as determined by the Agency’s <br />underwriting and financial feasibility analysis. Loan agreements for owner-occupied projects <br />shall include provisions to preserve income eligibility requirements and affordability through <br />subsequent resales. When financially feasible, the Agency will opt to recover its funds as quickly <br />as possible to recycle funds for additional loans. Where feasible, the Agency will consider term <br />loans. The Agency will consider: <br /> <br />1. Term Loan: Repayable with flexible terms and reasonable interest rate. <br />2. Deferred Loan: Repayable at a future certain date, upon available after-tax cash flow, <br />and/or upon on sale of property, default, or refinancing. <br />3. Loan Guarantee: Escrowed in a third-party account as a credit enhancement for a <br />private or public lender. <br />4. Forgivable Loan: Forgiven after certain conditions of the agreement are met. This <br />structure shall only be considered under exceptional circumstances or for special needs <br />projects. <br />